BlackRock Real Assets' ("BlackRock") Global Renewable Power ("GRP") platform has reached an agreement with Greenbacker Renewable Energy Company ("Greenbacker") for the sale of its controlling interest in the 42.5 MW Elk ("Elk") and 37.5 MW Bethel ("Hawkeye") operating wind energy facilities in Iowa. The transaction marks another exit for the GRP platform and is its second bilateral transaction with Greenbacker this year.
Acquired in 2015 by a fund managed by BlackRock's Global Renewable Power team, Elk and Hawkeye are high quality onshore wind projects that benefit from stable cash flows through a long-term offtake contract with Central Iowa Power Cooperative, an A-rated (S&P and Fitch1) cooperative energy provider serving 300,000 residents and more than 13,000 commercial and industrial accounts in Iowa. This transaction follows the sale of the Community Wind South project in Minnesota earlier this year, another long-term contracted renewable asset in the Midwest power market.
"Our second transaction with Greenbacker demonstrates our commitment to delivering value for our clients and to building strong, lasting, relationships with partners in our industry," said David Giordano, Global Head of Renewable Power at BlackRock. "As one of the early movers in the renewables investment sector, BlackRock is well positioned to source attractive projects that allow our clients to invest capital in the transition towards low carbon energy. The growing demand for clean renewable power, along with the need to replace aging power generation infrastructure in developed markets, presents significant opportunities for investors."
"Greenbacker is thrilled to acquire the Elk and Hawkeye projects in Iowa. Combined with our earlier acquisition of the Community Wind South project in Minnesota, we are adding 110 MWs of high-quality wind assets with a strong operational track record and long-dated investment grade offtake contracts that will provide attractive and stable cash flows to our investors for many years to come," said Charles Wheeler, CEO of Greenbacker. "We are pleased to have expanded our relationship with BlackRock and excited to have become a partner to the State of Iowa with this investment."
Skadden, Arps, Slate, Meagher & Flom LLP is the legal advisor on this transaction for BlackRock. Stoel Rives LLP is the legal advisor to Greenbacker.
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About BlackRock Real Assets
In today's dynamic and complex global investing market, we seek to help our clients access real assets that could help meet their investment goals by providing a distinct range of well-defined, outcome-orientated strategies along the investment risk-return spectrum.
Our dedicated teams of industry and sector specialists deliver global reach, with deep local expertise. They have decades of relevant experience, are deeply embedded in their operating industries by sector and geography and have developed strong partnership networks over time. BlackRock's culture of risk management, knowledge sharing and investment discipline sets us apart and underpins all that we do. With over 400 professionals in 27 offices managing over US$50 billion in client commitments as of June 30, 2019, BlackRock Real Assets partners with clients to provide solutions tailored to individual portfolio needs such as income, growth, liquid or balanced real assets outcomes.
Greenbacker seeks to acquire and operate a diversified portfolio of income-producing sustainable infrastructure assets in North America. Founded in 2011, Greenbacker generates attractive risk-adjusted returns for its shareholders through harvesting long-term and predictable cash flows from proven technologies. Following this transaction, Greenbacker will be building, owning, and operating over 335 MW of PV Solar, 172 MW of Onshore Wind, and 12 MW of Biomass for a total of 519MW under management. For more information, please visit www.greenbackercapital.com.
1 According to the CIPCO 2018 Annual Report: https://www.cipco.net/sites/cipco/files/images/Page%20Images/Annual%20Report%20Icons/CIPCO%20Annual%20Report%202018.pdf